Publication of the General Law on Alternative Dispute Resolution Mechanisms: Relevant information and possible future problems

Executive Summary:

• Over the past decades, Alternative Dispute Resolution Mechanisms have been a widely used means for the amicable resolution of disputes. Until now, this matter has been regulated locally; for example, in Mexico City since 2008 there has been the Alternative Justice Law of the Superior Court of Justice of Mexico City (“Alternative Justice Law of CDMX”). 
• On January 26, 2024, a Decree was published in the Official Gazette of the Federation issuing the new General Law on Alternative Dispute Resolution Mechanisms ("MASC Law
• This law will mark a new regulatory stage in the resolution of conflicts through alternative means, offering citizens an accessible and effective procedure for resolving disputes, prioritizing rapid solutions over lawsuits before courts.
• The main goal of the MASC Law is to promote a culture of conflict resolution through accessible mechanisms, reducing formalities that may hinder the administration of justice. 

The explanatory memorandum and opinion of the MASC Law underline the intention to guarantee alternative conflict resolution as a palpable human right in everyday life. The MASC Law also seeks to promote restorative justice and to expeditiously resolve everyday conflicts in civil, commercial, family and administrative matters. 

Some key considerations of the MASC Law:

• The figure of the “Facilitator” is created, an expert in charge of resolving disputes through agreements. 
• The Center for Alternative Dispute Resolution Mechanisms is hereby created, which will serve as an auxiliary body of the Judicial Branch of the Federation and the state judicial branches and which will also regulate the actions of the “Facilitators,” among other issues.
• The processing of an alternative mechanism for disputes that are being heard by a judge is contemplated, even with the possibility of suspending the respective trial. 
• A procedure is also provided for resolving disputes that do not arise from a judicial dispute; that is, those that are presented directly to be resolved through an alternative mechanism. In these cases, an abbreviated procedure is designed that should not exceed three months.  

The MASC Law also focuses on Restorative Justice, encouraging the Facilitator to seek to guarantee comprehensive reparation of damages, for which he may even rely on experts in specific areas, in addition to regulating "restorative processes" in certain matters - ensuring the psychological and emotional well-being of the parties. 

While it appears that the MASC Law will bring improvements to the dispute resolution system in Mexico, it should also be noted that there are certain areas that deserve reflection and give rise to reservations, for example: 

• In the case of mediation, the CDMX Alternative Justice Law regulated six clear stages for its processing. The MASC Law only provides that the Facilitator can propose preventive actions of giving, doing and not doing until reaching an Agreement, as well as holding meetings with the parties. 
• The potential complexities in the application of the ADR Law, in particular its implications for local laws, raise significant questions. When examining the transitional articles, especially its fourth article, questions arise as to the direct application of the ADR Law and how local laws should be updated, or whether direct application of the ADR Law should be the preferred option. 
• It is also not entirely clear how the General Congress and the Local Congresses should update the existing laws on the matter.
• It is also noteworthy that the MASC Act provides for civil liability sanctions for Facilitators in the event of negligent or deficient drafting of a Convention. From a practical point of view, this could discourage persons seeking to register and act as Facilitators. 
• The MASC Law limits the participation of Mediators, since only persons of Mexican nationality can obtain Certification as a Facilitator. This restriction excludes all foreign persons who wish to work as Facilitators. 

On the other hand, the MASC Law also provides for a Chapter on online procedure processing, which seeks to bring the procedure closer and modernize it by carrying out all the proceedings remotely and with virtual hearings. 

Speaking of dispute resolution, Santamarina + Steta has a well-established track record and a team of highly-trained professionals. The Firm prides itself on offering exceptional expertise in the field of legal negotiations. 

We have played a key role in numerous mediations, re-mediations and successful settlements in a wide variety of cases. Our strategic approach has been key to achieving beneficial settlements for our clients. This includes designing effective strategies for clients to obtain enforcement of their settlements.

By choosing Santamarina + Steta, our clients not only gain an experienced legal team, but also partners committed to achieving effective results at all stages of dispute resolution.

If you would like to learn more about the new MASC Law and how it may impact your business, operations and interests, please do not hesitate to contact our experts: